Every taxes and levies collected by MDA’s are legislated and approved for collection through the provision of the law of the Federal Republic of Nigeria; In accordance with the schedule to taxes and levies (Approved list for collection) Act, Cap.T2, 2004.
Arising from the foregoing, Part 1, 11 and 111has stipulated various approved revenue items as schedule for collection. It is therefore pertinent for various appropriate tax authorities to domesticate a law in line with the provision of the Federal law on how, when, where, approved tariff and penalty for such revenue heads to be collected.
The provision of the Federal law on schedule to taxes and levies approved list for collection has not appropriated on how rates, charges and penalty should be applied for effective collection and compliance, except for Business Registration charges which will be a topic for another edition.
Various MDA’s in Nigeria has anciently neglected the afore-cited provisions and thereby delving into the public domain by imposing taxes and levies on the masses without recourse to the rule of law.
Taxes and levies must be legislated by the Legislatives which is a process of DEMANDING while Executives implement; which falls within the purview of the MDA’s to ACCESS via COLLECT on behalf of the government.
Note; without demanding, by the Legislative, the Executive aim of Government cannot access and collect taxes and levies on behalf of the government which is the cardinal point of this write up.
Sequel to the above, any revenue collected by MDA’s without legislated is illegal and extortion from the masses. Therefore, the public should ask questions on which revenue items they are paying, rather than bothering, loading and confusing themselves with irrelevance questions of what such revenue collected is used for, what has government done to demand the collection of such revenue head? It is citizenry civic responsibility to pay Taxes and Levies in a friendly and acceptable manner.
Conclusion, State and Local Governments should make provision for revenue laws in accordance with the provision of the Federal law and thereby domesticate such collection into MDA’s to avoid multiple taxation. The public should be informed and orientated on the revenue items they are paying, how they should be paid and amount to be paid. Approach for collection should be professional and friendly. Payment should be at convenience and within a proposed time-frame.
FROM: MR DAVID OBOHO
POLICY ANALYST AND REVENUE CONSULTANT